What would you do with $1 million in cash

[Big_Hitter]

I'm surprised there are not more splurges. C'mon...money with no tax consequences and it all goes into your AA?

no; but $1M tax free falls into my lap I'd prolly pull a johnny paycheck

 

[street]

My first thought would be to invest it all back in stocks and bonds. Lol Just to acquire more because that is my makeup.

I would be tempted to invest in some real-estate I always love to buy land then sell it again for a profit.

 

[GrayHare]

I'm surprised there are not more splurges. C'mon...money with no tax consequences and it all goes into your AA?

To me that $1 million is for investing, but its earnings are for food, fun, and all else.

 

[jjquantz]

I would start investigating permanent overseas retirement locations and/or snow birding locations with warm weather and DEEP, DEEP arts infrastructure in our areas of interest (Malta? Sydney?).

 

[DrRoy]

Assuming this is new $, I would go for real estate as I already have plenty of stocks and bonds. First I would build the timber frame house that DW and I have always wished for. The balance would go into rental properties in places that we would like to hang out at for the scenery, like Telluride or Jackson, WY.

 

[aaronc879]

I'm surprised there are not more splurges. C'mon...money with no tax consequences and it all goes into your AA?

I would upgrade my 13 year old vehicle but the rest would all go into AA since it's several times my current investable net worth. If I already had a million or two then i'd spend it on luxuries.

 

[donheff]

I had a little more than half that amount that drop in my bag last spring when I sold our weekend house. I dumped it all into VG equity funds in the taxable account and reallocated 401Ks to balance out our bond allocation. Like pb4uski suggested I held back $20K and upgraded our basement family room.

 

[Another Reader]

Spend half on hookers and blow, $100,000 to a mix of charities, then waste the rest on half stocks and half bonds. I'd like to up my bond holdings a bit.

Better factor in the cost of the divorce...

I would pay off some rental mortgages and put at least half of it away for the next downturn in the real estate market. Maybe I could buy FUEGO's house after the divorce...

 

[socca]

 

[bloom2708]

Keep $100k in checking account. 50% VTSAX (Total US), 50% VWIUX (Int-Term Tax-Exempt Bond Index).

 

[HillCountry]

I believe many people have multiple of this based on the recent cash holding poll.

 

[Katiek]

Put $100,000 in a relatively liquid account for splurges in the future - likely home repairs/updates after I retire. The rest would be invested according to my asset allocation plan.

 

[pb4uski]

I would start investigating permanent overseas retirement locations and/or snow birding locations with warm weather and DEEP, DEEP arts infrastructure in our areas of interest (Malta? Sydney?).

US winters in Sydney would be wonderful. First class to and from of course.

 

[Bamaman]

I found myself in this position. I paid off my car, paid off my house and bought my sister's half of a very expensive inherited lake house.

Then my wife got bored and negotiated to buy a foreclosure home down the street--an absolutely impressive home on 5.5 acres with a 20x40 pool. The deal fell through, thankfully as I wasn't up to repainting and reflooring 6000 square feet.

The wife ended up finding a 5 bedroom, 5 bathroom foreclosure with 2 double car garages--somewhat over 5000 square feet. Now she complains about cleaning bathrooms constantly. But she loves it, but feels good we're in it for 25% less than it's worth. Cash speaks when buying foreclosed homes.

We're putting the last house on the market next week. Who needs to have 13,000 square feet of houses, as insurance and utilities hurt? I'm thankful Alabama property taxes are ridiculously low when I paid them today.

 

[NW-Bound]

I would invest it first, the same way I am doing now.

Then, I would see what an additional $35K/year can get me. I may go for business-class seats now.

 

[travelover]

I would invest it first, the same way I am doing now.

Then, I would see what an additional $35K/year can get me. I may go for business-class seats now.

I'd crank up the thermostat to 68° all winter.

 

[Walt34]

Invest same as the rest of the portfolio. Increase spending from outset of retirement.)

Mostly this, but I'd also keep some out to party with, maybe ~$200k. Spend $25k on camera gear, give $80 - $100k to younger sister who, while not living in poverty, doesn't have much extra either.

And I like W2R's idea of the $100 bill for tips at the restaurants. Our eating out would probably increase a lot. Housecleaning service, DW would go nutso buying stuff for the grandnieces and grandnephews. Lots of options to think about. I'll give it more thought when it happens.

 

[NW-Bound]

I'd crank up the thermostat to 68° all winter.

I leave the thermostat at my high-country home at 45F year-round, whether I am there or not. 68°? Nah, I like it cold. It helps me burn calories, so that I can stay lean and mean.

 

[ziggy29]

I'm assuming this is not taxable.

First I'd put 10% into a charitable fund and direct charitable donations from that fund over time.

Next, since DW is a pastor and we don't own our home, I'd probably put around $250K into a balanced investment fund (40/60 or 50/50, give or take) to set aside for a retirement home purchase in the future.

That would leave maybe $650K. I would invest about $500K of that into stodgy, reliable dividend stocks and reinvest dividends. We are in the 15% bracket so dividends and LTCG currently have 0% tax. I would not invest in bonds in a taxable account; if I needed more bond investment I would do so in my 401Ks and IRAs, and move stock investments to taxable accounts as appropriate. We have enough earned income that we could contribute to TIRAs, DW's 403B and my TSP to stay in the 15% bracket if we needed to. in order to make sure LTCGs and dividends remained untaxed.

The other $150K I would slowly burn as play money -- for vacations and travel primarily. We'd probably eat out more and tip very generously. And I'd use some of that over the years if I needed to make moves to keep taxes lower and stay on the right side of cliffs in the tax code as need be.

 

[Mdlerth]

I interpret the question as dealing with an EXTRA million on top of whatever resources one already has.

What I want most desperately from retirement is free time, not toys or travel or luxuries. So for me, such a windfall would instantly shave the remaining years off my glide path and I would want to retire right away.

I suspect DW would lobby to accelerate a few upgrades to the Mdlerth estate. It would not surprise me if she put a big dent in that pile, shaving an extra year back onto the glide path.

But I love her!

 

[jollystomper]

I would figure out how to donate or help others with 25% of it. I have enjoyed opportunities to gift others. For the big tipping at restaurants mentioned by others, I have done this and it is great, I enjoy the reaction (even when they have the potential to get me in trouble with DW ).

I would then allocate 20% for "fun money", and invest the remaining 55% in 40% dividend focused broad stock fund/ETF/60% total bond market fund/ETF.

 

[Bestwifeever]

I'm surprised there are not more splurges. C'mon...money with no tax consequences and it all goes into your AA?

Well, the thread is in the stock picking and market strategy forum....

For fun stuff with a bonus $1 mil, we're flying first class, starting early and taking our dog.

 

[Months.in.Wyoming]

110k towards a used Audi R8, 90k addition to Cash, 500k to current plan which is a mix of equity funds - and then 300k to my hobby account trading leveraged ETF's in Gold and Oil - it's was working great but I stopped in order to focus on work! But I do look forward to going back to that in ER...

 

[AllDone]

A little apartment in Paris after setting aside a bit for business class tickets too and from.

 

[dtbach]

I'm getting close to this in reality as my 96 year old father is getting pretty frail and is worth ~2.5M. Yeah, I know, never count on an inheritance but . . .

Anyway, 100K will go into a savings account to pay for about 10 years of vacation upgrades. The rest will go into my current AA of 60/40.